💳 AI and Financial Inclusion: How Credit Scoring with Non-Traditional Data is Transforming Access to Finance
🌍 Introduction: Why AI Matters for Financial Inclusion Across the world, 1.4 billion adults remain unbanked (World Bank, 2023). Traditional credit scoring systems — built on financial history, credit cards, and bank loans — exclude millions of people who have never had access to formal banking. This creates a cycle where those without credit cannot access credit, trapping them outside economic growth. Here’s where artificial intelligence (AI) comes in. By analyzing non-traditional data sources like mobile payments, utility bills, social signals, and online transactions , AI-powered credit scoring models can bring financial inclusion to billions. This blog explores the future of credit scoring and how AI is unlocking new opportunities in fintech, empowering communities, and reshaping global finance. 🏛️ The Traditional Credit Scoring System: A Barrier to Inclusion Traditional credit systems rely on: Credit history (loans, credit cards). Income and employment data. Repayme...